IMF warns an AI market correction could ripple through global finance

The International Monetary Fund warned against "complacency" in global markets in its Global Financial Stability Report, released at the IMF-World Bank meetings in Bangkok. It named an AI-driven selloff, a disorderly spike in sovereign bond yields and a major cyberattack as plausible near-term catalysts for turmoil. The fund cited "growing evidence" that AI may not need investment on the scale hyperscalers are making, or deliver gains as large as expected, and noted that hyperscalers now account for 10% of global investment-grade bond issuance, up from under 1% in 2024. "The consequences of an AI correction could be global," the IMF said, urging policymakers to curb excessive leverage.